20 Best Online Brokers and Trading Platforms of 2023

Investing in the stock market used to require working with a traditional brokerage firm, but the rise of online brokerages has made buying and selling stocks much more accessible for regular investors. Online brokerages offer a convenient way to manage your own portfolio without the high account minimums and commissions of traditional firms.

But with so many online brokerages to choose from, how do you pick the right one for your needs? This guide will walk you through the key features of top online brokerages and provide tips on finding the best fit.

What Are Online Brokerages and How Do They Work?

best online trading platform — *Image Credits: Pexels*

An online brokerage is a company that provides a platform for investors to buy and sell stocks and other securities over the Internet. Rather than calling a broker to place trades, you can log in online or via an app to execute trades yourself with low commissions.

Online brokerages offer many helpful features including:

Trading platforms with real-time market data
Automated trading options like robo-advisors
Research tools like stock screeners
Educational resources for new investors
Mobile app access

Leading Online Brokerages for Stock Trading

Some of the top online brokerages include:

Fidelity – Best for research with a wide range of investment options beyond stocks
Charles Schwab – Excellent service combined with $0 commissions on stocks
E*TRADE – User-friendly platform great for beginners
Interactive Brokers – Sophisticated trading technology for active investors
Robinhood – Easy app trading without any commissions

Choosing the Right Online Brokerage

The best online brokerage for you depends on your investing goals, experience level, and preferences. Here are some key factors to consider when comparing providers:

Pricing – Commission fees and account minimums
Platform – Desktop and mobile app usability
Investment choices – Stocks, ETFs, mutual funds, etc.
Research and tools – Analyst ratings, screeners, charts, etc.
Customer service – Availability for questions and guidance

Start by looking at the pricing structure and make sure the investment selections match your goals. It’s also essential to find an intuitive platform that fits your tech comfort level. Many brokers offer virtual trading to test drive the experience before opening an account.

Risks and How to Protect Yourself with an Online Brokerage

While online brokerages make investing more accessible, there are still risks involved in the stock market. Three key ways to protect yourself are:

Start with your risk tolerance and invest conservatively until you build knowledge.
Diversify your investments across stocks, sectors, and asset types like bonds.
Use limit orders instead of market orders so you control the maximum price paid.

Online brokerages empower more people to take control of their financial future. Just take time to research providers and approach markets cautiously at first. With the right brokerage, investing is easier than ever in 2023.